Safaricom, a Kenya-based telecommunications company, recently debuted an overdraft feature called “Fuliza,” which allows customers of the firm’s M-Pesa mobile banking service to withdraw money from their accounts even when they have a zero balance. The overdrawn amount must be repaid within 30 days. Safaricom has not divulged the maximum amount customers may overdraw.
Fuliza loans are underwritten by the Kenya Commercial Bank (KBC) Group and the Commercial Bank of Africa (CBA) Group, both of which are headquartered in Kenya. Safaricom credits Fuliza with bringing in 1 million new M-Pesa customers during the first eight days of its availability.
Safaricom was established in 1997 and is 40-percent held by Vodafone Kenya, which is controlled by the UK-based Vodafone Group. Another 35 percent of Safaricom’s shares are owned by the government of Kenya. The company reported total 2018 revenue of KES 233.2 billion (USD 2.3 billion) and net income of KES 23 billion (USD 228 million). It had 28 million customers as of 2017.
Vodafone Group owns and operates networks in 25 countries in Africa, Asia, Europe, the Middle East and the Pacific. Including its partner networks in an additional 47 countries, it serves a total of 536 million customers. For the year ending March 31, 2018, the group reported revenue of EUR 46.5 billion (USD 53.4 billion) on total assets of EUR 146 billion (USD 167 billion).
Tiannah Steele, Research Associate
Sources and Additional Resources
Kenya’s Safaricom’s overdraft service exceeds expectations
https://www.reuters.com/article/kenya-safaricom/kenyas-safaricoms-overdraft-service-exceeds-expectations-ceo-idUSL8N1ZH32N
Fuliza M-Pesa
https://www.safaricom.co.ke/faqs/faq/512
Safaricom homepage
https://www.safaricom.co.ke
Safaricom 2018 annual report
https://www.safaricom.co.ke/images/Downloads/Safaricom_annual_report_070818.pdf
Vodafone homepage
https://www.vodafone.com
Vodafone 2018 annual report
https://www.vodafone.com/content/annualreport/annual_report18/downloads/Vodafone-full-annual-report-2018.pdf
MICROCAPITAL BRIEF: Vodacom Paying $2.6b to Its Majority Shareholder, Vodafone, for 35% Equity Stake in Owner of Kenya’s M-Pesa Mobile Money Service, Safaricom
https://www.microcapital.org/microcapital-brief-vodacom-paying-2-6b-majority-shareholder-vodafone-35-equity-stake-owner-kenyas-m-pesa-mobile-money-service-safaricom/
MICROCAPITAL BRIEF: Safaricom Foundation; Junior Achievement Kenya; Hand in Hand Eastern Africa (HiHEA) Launch $133k Fund for Youth-Owned Microenterprises
https://www.microcapital.org/microcapital-brief-safaricom-foundation-junior-achievement-kenya-hand-in-hand-eastern-africa-hihea-launch-133k-fund-for-youth-owned-microenterprises/
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